Oil edges up to highest since March on hopes for U.S. stimulus - Reuters:
Brent oil futures on Tuesday closed at their highest since early March on hopes the United States is making progress on a new economic stimulus package, as well as curbing the coronavirus spread.
Brent rose 28 cents, or 0.6%, to settle at $44.43 a barrel, its highest close since March 6. U.S. West Texas Intermediate (WTI) crude rose 69 cents, or 1.7%, to $41.70, its highest finish since July 21.
Earlier in the day, both Brent and WTI were trading at their highest since early March.
Those price moves came ahead of the release of an industry report later Tuesday from the American Petroleum Institute that is expected to show a decrease in U.S. crude stockpiles last week.
Tuesday 4 August 2020
Resilient #Qatar Maintains Stable Outlook
Resilient Qatar Maintains Stable Outlook
The Gulf State of Qatar has received a thumbs-up from Fitch Ratings, which in June reaffirmed the country’s AA- default risk rating. Fitch repeated the assessment it made in February and said that Qatar has maintained a stable economic outlook. This matters to foreign investors, as it means Qatar is likely to have low budget deficits in the coming years, and not need to raise taxes in the wake of the pandemic.
Qatar offers inward investors a buoyant economy fueled by huge oil and gas exports, world-class infrastructure, proximity to growth markets and an increasingly business-friendly environment. With the world’s attention on Qatar as it prepares to host the 2022 World Cup, the country is vying to build on its rising profile and attract greater foreign investment to its shores.
Fitch’s AA- rating for Qatar means the country has little risk of debt default. Fitch stated that the rating reflects Qatar’s strong foreign asset ownership; the country’s $320 billion sovereign wealth fund, the Qatar Investment Authority, has invested heavily in buying up assets overseas. Fitch also pointed to Qatar’s strong GDP per capita, one of the highest in the world, and the “flexible public finance structure” that has allowed the government to manage its debts and create a “robust response to limit the fiscal impact of the coronavirus crisis.”
The Gulf State of Qatar has received a thumbs-up from Fitch Ratings, which in June reaffirmed the country’s AA- default risk rating. Fitch repeated the assessment it made in February and said that Qatar has maintained a stable economic outlook. This matters to foreign investors, as it means Qatar is likely to have low budget deficits in the coming years, and not need to raise taxes in the wake of the pandemic.
Qatar offers inward investors a buoyant economy fueled by huge oil and gas exports, world-class infrastructure, proximity to growth markets and an increasingly business-friendly environment. With the world’s attention on Qatar as it prepares to host the 2022 World Cup, the country is vying to build on its rising profile and attract greater foreign investment to its shores.
Fitch’s AA- rating for Qatar means the country has little risk of debt default. Fitch stated that the rating reflects Qatar’s strong foreign asset ownership; the country’s $320 billion sovereign wealth fund, the Qatar Investment Authority, has invested heavily in buying up assets overseas. Fitch also pointed to Qatar’s strong GDP per capita, one of the highest in the world, and the “flexible public finance structure” that has allowed the government to manage its debts and create a “robust response to limit the fiscal impact of the coronavirus crisis.”
Oil Prices for Aug. 04, 2020: Brent Crude, WTI - Bloomberg
Oil Prices for Aug. 04, 2020: Brent Crude, WTI - Bloomberg:
Oil dropped toward $40 a barrel in New York after the biggest gain in two weeks as investors weighed additional OPEC supply hitting the market against signs of an economic recovery across major economies.
OPEC’s crude output rose last month led by Saudi Arabia ahead of the group and its allies relaxing their historic cuts this month, according to a Bloomberg survey. Oil futures added 1.8% on Monday for a second daily increase, tracking stronger equities after U.S. manufacturing rapidly expanded in July, while euro area factories returned to growth.
The futures curve, however, is showing some weakness, with the three-month timespread for benchmark U.S. crude near the widest contango since May, indicating there are some concerns about oversupply.
Oil dropped toward $40 a barrel in New York after the biggest gain in two weeks as investors weighed additional OPEC supply hitting the market against signs of an economic recovery across major economies.
OPEC’s crude output rose last month led by Saudi Arabia ahead of the group and its allies relaxing their historic cuts this month, according to a Bloomberg survey. Oil futures added 1.8% on Monday for a second daily increase, tracking stronger equities after U.S. manufacturing rapidly expanded in July, while euro area factories returned to growth.
The futures curve, however, is showing some weakness, with the three-month timespread for benchmark U.S. crude near the widest contango since May, indicating there are some concerns about oversupply.
Malaysia Open to Settling 1MDB Case Against #AbuDhabi State Fund - Bloomberg
Malaysia Open to Settling 1MDB Case Against Abu Dhabi State Fund - Bloomberg:
Malaysia is open to settling its legal battle with Abu Dhabi’s state investment fund over 1MDB, just weeks after clinching a multibillion dollar deal with Goldman Sachs Group Inc. over the troubled state fund.
The country is willing to consider a settlement if International Petroleum Investment Co. makes an offer that’s in line with Malaysia’s intent to retrieve assets and ensure justice is carried out, Attorney-General Idrus Harun said in a statement Tuesday. For now, Malaysia hasn’t dropped its proceedings against IPIC and talks are ongoing between the two countries, he added.
The government is challenging an arbitration award that requires it to pay $5.78 billion to IPIC and the holders of certain 1MDB bonds, seeking to recover $3.5 billion paid by 1MDB or reduce its liability to pay interest and principal under bonds jointly guaranteed by IPIC up to that same amount. In November, the country won a ruling at the London court to allow public hearings for the case.
Two years after Malaysia revived investigations into 1MDB, the country is starting to see a few of the proceedings reach some form of resolution. Former premier Najib Razak was sentenced to 12 years in prison and a 210 million ringgit ($50 million) fine last week after he was ruled guilty in a case linked to 1MDB. Malaysia struck a $3.9 billion settlement with Goldman Sachs in July to resolve criminal charges against the U.S. bank.
Malaysia is open to settling its legal battle with Abu Dhabi’s state investment fund over 1MDB, just weeks after clinching a multibillion dollar deal with Goldman Sachs Group Inc. over the troubled state fund.
The country is willing to consider a settlement if International Petroleum Investment Co. makes an offer that’s in line with Malaysia’s intent to retrieve assets and ensure justice is carried out, Attorney-General Idrus Harun said in a statement Tuesday. For now, Malaysia hasn’t dropped its proceedings against IPIC and talks are ongoing between the two countries, he added.
The government is challenging an arbitration award that requires it to pay $5.78 billion to IPIC and the holders of certain 1MDB bonds, seeking to recover $3.5 billion paid by 1MDB or reduce its liability to pay interest and principal under bonds jointly guaranteed by IPIC up to that same amount. In November, the country won a ruling at the London court to allow public hearings for the case.
Two years after Malaysia revived investigations into 1MDB, the country is starting to see a few of the proceedings reach some form of resolution. Former premier Najib Razak was sentenced to 12 years in prison and a 210 million ringgit ($50 million) fine last week after he was ruled guilty in a case linked to 1MDB. Malaysia struck a $3.9 billion settlement with Goldman Sachs in July to resolve criminal charges against the U.S. bank.
Middle East Private Schools: GEMS Education Raises $150 Million in Debt - Bloomberg
Middle East Private Schools: GEMS Education Raises $150 Million in Debt - Bloomberg:
GEMS Education raised $150 million in debt funding as the Middle East private-schools operator seeks to bolster its cash levels during the coronavirus pandemic.
The financing is being provided by an existing investor that Dubai-based GEMS didn’t identify in a term sheet sent to investors on Monday. The “incremental” funding will be used to support working capital needs, the company said.
A representative for GEMS confirmed the amount of capital being raised and its purposes in the note that was seen by Bloomberg.
GEMS, which operates 65 schools across the United Arab Emirates, Qatar and the U.K., has provided discounts to parents struggling to pay fees amid the coronavirus pandemic. While revenue has been little changed as result, the firm has collected 98% of school fees for the fiscal year through August, and expects to collect “most of the balance,” according to a presentation last month.
GEMS Education raised $150 million in debt funding as the Middle East private-schools operator seeks to bolster its cash levels during the coronavirus pandemic.
The financing is being provided by an existing investor that Dubai-based GEMS didn’t identify in a term sheet sent to investors on Monday. The “incremental” funding will be used to support working capital needs, the company said.
A representative for GEMS confirmed the amount of capital being raised and its purposes in the note that was seen by Bloomberg.
GEMS, which operates 65 schools across the United Arab Emirates, Qatar and the U.K., has provided discounts to parents struggling to pay fees amid the coronavirus pandemic. While revenue has been little changed as result, the firm has collected 98% of school fees for the fiscal year through August, and expects to collect “most of the balance,” according to a presentation last month.
2020 Year of Crisis: Middle East Bloomberg.com
2020 Year of Crisis: Middle East Bloomberg.com:
The Middle East was hammered by the double whammy of Coronavirus lockdowns and a collapse in oil prices. But tourists are returning, businesses are trying to get back to normal, and even Saudi Arabia says there's light at the end of the tunnel. We check in on how the Gulf is coping in this Bloomberg Special. (Source: Bloomberg)
The Middle East was hammered by the double whammy of Coronavirus lockdowns and a collapse in oil prices. But tourists are returning, businesses are trying to get back to normal, and even Saudi Arabia says there's light at the end of the tunnel. We check in on how the Gulf is coping in this Bloomberg Special. (Source: Bloomberg)
#UAE consumer confidence lowest in Gulf; jobs, finances among top concerns | ZAWYA MENA Edition
UAE consumer confidence lowest in Gulf; jobs, finances among top concerns | ZAWYA MENA Edition:
Consumer confidence in the UAE has fallen to its lowest level since the 2009 global recession, owing to declining sentiments towards personal finances, as well as employment and economic prospects, according to a new survey.
The country’s consumer confidence index, which tracks how people feel about the economy, among other categories, fell to 92 points in the second quarter of this year, the lowest since the last quarter of 2009.
“Consumers in [the] United Arab Emirates… are among the least optimistic in the region… The UAE consumer confidence index fell below the 100 optimistic mark,” the Conference Board Gulf Center for Economics and Business Research said in a new report.
The board has recently released the Global Consumer Confidence Index for the Gulf region, which was based on a poll conducted in May 2020 among more than 33,000 consumers in 68 markets, including the Middle East, Europe, Africa, Asia-Pacific, Latin America and North America.
Consumer confidence in the UAE has fallen to its lowest level since the 2009 global recession, owing to declining sentiments towards personal finances, as well as employment and economic prospects, according to a new survey.
The country’s consumer confidence index, which tracks how people feel about the economy, among other categories, fell to 92 points in the second quarter of this year, the lowest since the last quarter of 2009.
“Consumers in [the] United Arab Emirates… are among the least optimistic in the region… The UAE consumer confidence index fell below the 100 optimistic mark,” the Conference Board Gulf Center for Economics and Business Research said in a new report.
The board has recently released the Global Consumer Confidence Index for the Gulf region, which was based on a poll conducted in May 2020 among more than 33,000 consumers in 68 markets, including the Middle East, Europe, Africa, Asia-Pacific, Latin America and North America.
RAK Bank to close 25% of its branches next month | ZAWYA MENA Edition
RAK Bank to close 25% of its branches next month | ZAWYA MENA Edition:
The National Bank of Ras Al Khaimah (RAK Bank) will shut down nine branches from next month as demand for digital banking grows among the UAE residents.
The lender will close six branches in Dubai and one each in Sharjah, Khor Fakkan and Abu Dhabi from September 3, 2020. In Dubai, branches in Al Ras, Mirdiff, Marina Diamond, Al Quoz Industrial, Dubai Investment Park and Jebel Ali Free Zone will be closed, while Sharjah's industrial area and Abu Dhabi's Al Jazeera branches will also be shut, it said in a statement sent to its customers.
Operating 36 branches across the country, the closure of nine branches will reduce the lender's network by 25 per cent.
Banks in the UAE have been reducing branches as customer footfall continues to drop, especially after the outbreak of the coronavirus pandemic as more residents are opting for digital banking. Banks are also investing heavily in the development of digital infrastructure, which also reduces cost for them in the long run.
The National Bank of Ras Al Khaimah (RAK Bank) will shut down nine branches from next month as demand for digital banking grows among the UAE residents.
The lender will close six branches in Dubai and one each in Sharjah, Khor Fakkan and Abu Dhabi from September 3, 2020. In Dubai, branches in Al Ras, Mirdiff, Marina Diamond, Al Quoz Industrial, Dubai Investment Park and Jebel Ali Free Zone will be closed, while Sharjah's industrial area and Abu Dhabi's Al Jazeera branches will also be shut, it said in a statement sent to its customers.
Operating 36 branches across the country, the closure of nine branches will reduce the lender's network by 25 per cent.
Banks in the UAE have been reducing branches as customer footfall continues to drop, especially after the outbreak of the coronavirus pandemic as more residents are opting for digital banking. Banks are also investing heavily in the development of digital infrastructure, which also reduces cost for them in the long run.
European, Middle Eastern & African Stocks - Bloomberg #UAE close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Oil slips as rise in coronavirus cases overshadows fuel demand recovery - Reuters
Oil slips as rise in coronavirus cases overshadows fuel demand recovery - Reuters:
Oil prices eased on Tuesday amid concerns that a fresh wave of COVID-19 infections around the world will see a pickup in fuel demand stalling amid tighter lockdowns - just as major producers ramp up output.
U.S. West Texas Intermediate (WTI) crude futures eased 4 cents, or 0.1% to $40.97 a barrel at 0655 GMT, while Brent crude futures fell 11 cents, or 0.3% to $44.04 a barrel.
The slide comes after WTI rose 1.8% and Brent climbed 1.5% on Monday on better-than-expected data on manufacturing activity in Asia, Europe and the United States showing factories were emerging from the worst of the early coronavirus pandemic impact.
“On the demand side, we had quite encouraging global manufacturing (data) ... but there’s still quite a bit of evidence of the oil demand recovery stalling in quite a few markets with a resurgence of COVID-19,” said Lachlan Shaw, head of commodity research at National Australia Bank (NAB).
Oil prices eased on Tuesday amid concerns that a fresh wave of COVID-19 infections around the world will see a pickup in fuel demand stalling amid tighter lockdowns - just as major producers ramp up output.
U.S. West Texas Intermediate (WTI) crude futures eased 4 cents, or 0.1% to $40.97 a barrel at 0655 GMT, while Brent crude futures fell 11 cents, or 0.3% to $44.04 a barrel.
The slide comes after WTI rose 1.8% and Brent climbed 1.5% on Monday on better-than-expected data on manufacturing activity in Asia, Europe and the United States showing factories were emerging from the worst of the early coronavirus pandemic impact.
“On the demand side, we had quite encouraging global manufacturing (data) ... but there’s still quite a bit of evidence of the oil demand recovery stalling in quite a few markets with a resurgence of COVID-19,” said Lachlan Shaw, head of commodity research at National Australia Bank (NAB).
Kuwaiti lessor Alafco reaches deal with Boeing in 737 MAX dispute - Reuters
Kuwaiti lessor Alafco reaches deal with Boeing in 737 MAX dispute - Reuters:
Kuwaiti aircraft leasing company Alafco will buy fewer aircraft from Boeing after reaching an agreement to end its legal claim over a cancelled 737 MAX order, it said on Tuesday.
Alafco was suing the U.S. planemaker for $336 million over accusations it wrongly refused to return advance payments on a cancelled order for 40 of its troubled 737 MAX planes.
The Kuwaiti lessor will now buy 20 aircraft from Boeing, instead of 40, with new delivery dates, it said in a bourse filing.
Additional details of the agreement could not be disclosed due to confidentiality clauses, it said.
Kuwaiti aircraft leasing company Alafco will buy fewer aircraft from Boeing after reaching an agreement to end its legal claim over a cancelled 737 MAX order, it said on Tuesday.
Alafco was suing the U.S. planemaker for $336 million over accusations it wrongly refused to return advance payments on a cancelled order for 40 of its troubled 737 MAX planes.
The Kuwaiti lessor will now buy 20 aircraft from Boeing, instead of 40, with new delivery dates, it said in a bourse filing.
Additional details of the agreement could not be disclosed due to confidentiality clauses, it said.
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